The day of the future: the new housing sector, earnings

While cash fled shares in the wake of the revision of the Standard & poor's downgraded its outlook on U.S. debt to negative from stable yesterday, the Treasury market rallied to the advantages of close to one month. The yield of the 10-year reference declined four basis points 3.37%, while the yield on 30-year fell by two basis points is% 4.35 and coupon FNCL 4.5 MBS went out 9/32 higher prices 102-05.

Yields of Treasury changed gradually higher in active trading overnight. Note 10-year reference is now-4/32 to 101-29 heavy-duty 3.391% (+ 1.1 bps) and FNCL 4.5-2/32 102-03 heavy-duty 4.139% in accordance with the MBS MND model by the yield.

Actions are more or less flat Monday after a sharp sell Off that pushed indexes more than 1% lower. S & P 500 futures are up to 2 points to 1,303.00, Dow futures trade 28 points higher at 12,168.

Light crude oil futures are now-0.63% to $ 106.44 and gold futures are + 0.19% to $ 1,495.30. The price of gold traded around $ 1,500 yesterday, a new record high.

Mixed guidance from markets around the world. Asian stocks were mostly lower with shares in Japan and Hong Kong falling 1 21% and 30%, respectively; the current session, Europe is more positive with shares London rises 0.49% and 0.36% German stocks climbing.

Key earnings releases this morning include Goldman Sachs, Intel, and IBM. After bell results from Yahoo expects too. While the housing data hit the wires, too, the focus is clearly on earnings.

Today's events:

8: 30 ? the average of five months for housing starts was relatively flat from the summer of 2009, but the amount from month to month are wild and unpredictable. In February the index dropped 22.5% numbing the mind to their second lowest in the records books (which date back to 1946), but the month before in jumped 18.4%. So is expected this month? Another great leap.

Economists polled by Thomson Reuters for an annual rate of housing starts leap 9,6% to 525 k per year. Estimates, of course, all all over the place, from the half million to 625 k.

"Melting snow in the Northeast and Midwest and payback from the building code changes in the West, which increased ? begins in December and January in February cost ? may have played a role in the horrifying numbers," said economists at IHS Global Insight. "We expected a much better numbers for March, but these increases will be payback numbers, not the numbers indicating the pickup in demand."

Economists at BBVA advise keeping expectations low for the coming year.

"The housing market will continue to suffer from foreclosures, despite robust economic recovery," they said. "A significant decline in existing home prices to attract customers and reduce the demand for new homes, and therefore, we expect housing starts, building permits to improve, but still weak throughout the year."

Treasury Auctions:
11: 30-4-week bills